Let Them Eat Losses

Tuesday, July 27, 2010
By Paul Martin

by Gerald Celente
LewRockwell.com

This had nothing to do with the so-called “Trickle Down” theory. This was “Gush Up.” In Bush/Obama economics, the richest and biggest that had lost billions through bad investments, or were in danger of going bust, had to be rescued. If the Über-Rich weren’t saved, there would be nothing left to trickle down to the population below. By government decree, those taxpayers who had never felt any trickle to begin with, now had to finance the failed financiers.

If taxpayers found themselves unable to understand the thinking behind “Gush Up,” it was not surprising. Why should it make sense? Nothing else did. The entire financial system had been hijacked by bandits. It was criminal from beginning to end.

For example, in a 2008 interview, hedge fund executive Kyle Bass, who runs Hayman Advisors, described the deceit that was camouflaged by its own complexity as a billion-dollar fraud, “… so complex that The [Wall Street] Journal couldn’t even write about it. That’s how complex it is. It would take teams of lawyers reading indentures, complex flow charts. And then people would look at you with cross-eyes, even if you understood it all. They’d go like, ‘Yeah, well, I don’t see it.’”

The experts engineering the schemes were baffled by the complexity of their creations, and yet insisted upon being bailed out of something that they themselves didn’t understand.

The implicit rationale was that only those Harvard, Princeton and Yale MBAs, Ph.Ds. and LL.Ds. were qualified to pull the levers of power on Wall Street and in Washington. Only they – who had devised the derivative, and conjured up the synthetic credit default swap, and invented the enhanced structured investment vehicle – were equipped to deal with the complexities of contemporary business and finance. Thus, those who didn’t know nevertheless insisted they knew best. The Bigs had to be saved.

In the dying American Empire, there was no longer a place for the small:

The Rest…HERE

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